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School Bus Retrofit and Replacement Account

This page last reviewed September 22, 2014

2014 Case-by-Case Determinations

Reference:
#2014-SB07Request:
For the following five buses owned by the Mount Diablo Unified School
District (MDUSD), the air district is requesting an exemption from the
requirement for a school bus to be at least 14 years old to receive
funding for compressed natural gas (CNG) tank replacement:
numbers 30 (Vehicle Identification Number [VIN] 1BABNBMA51F096399), 32
(VIN 1BABNBMAX1F096401), 34 (VIN 1BABNBMA31F096403), 35 (VIN
1BABNBMA51F096404), and 36 (VIN 1BABNBMA71F096405).
Air District: Bay Area Air Quality Management District
Guidelines Section(s): Mail-Out #MSC 11-37

Determination:
Mail-Out #MSC 11-37 requires school buses to be at least 14 years old,
but no older than 16 years, to receive Assembly Bill (AB) 923 funding
for CNG tank replacement. All five of the school buses listed
in this request are model year 2001 vehicles and the documentation
provided shows that all of the CNG gas tanks that are to be replaced
will expire in February 2015. In order to ensure tank
replacement prior to expiration, the air district will need the ability
to execute the contract and proceed with this project prior to the
buses reaching 14 years of age.

NOTE: This approval is granted only to provide the air district with the
ability to execute contracts and proceed with projects prior to the
buses reaching 14 years of age, and does not constitute a review or
approval of any other aspect of the projects. It is the air
district’s responsibility to verify that the project conforms to all
applicable guidelines, mail-outs, and statutes. In addition,
for MDUSD’s five buses, this determination is contingent upon the air
district obtaining photographic documentation of serial numbers – in
the form of photos of the tank labels – from MDUSD once the serial
numbers on the tank labels are accessible for photography.

ARB Action:
Approved for funding with AB 923 funds.Determination Date:
September 22, 2014Contact:Kimya Lambert
(916) 323-2507Reference: #2014-SB06Request:
Allow LESB funding (AB 923) of one Fairfield-Suisun Unified
School District bus by granting an extension of 8 days beyond the
60-day requirement to dispose of old bus #915 (VIN 1HVBAZRM0MH379843)
after delivery of the new bus.Air District:
Bay Area AQMDGuidelines Section(s):
Appendix C, Section K; Mail-Out #MSC 11-16Determination:
LESBP Guidelines require that school districts ensure
that the old school bus is dismantled within 60 days of the receipt of
the new, replacement bus. Mail-Out #MSC 11-16 says that “dismantling is
not required within 60 days if documentation shows that the old school
bus was not driven after delivery of the new replacement
bus.” Communications from the Vehicle Maintenance Supervisor
at the school district indicate that the old school bus was driven
after delivery of the new bus because the school district does not
consider a new school bus ready for service until they have installed
video surveillance, 2-way radios and GPS units and have conducted their
own safety inspection. The old school bus was not driven
after the new school bus met the school district safety inspection
standards and placed into service. In addition, the old
school bus was dismantled 68 days after delivery of the new school bus.

ARB Action:
Approved for funding.Determination Date:
July 30, 2014Contact:Lisa Jennings
(916) 322-6913
Reference: #2014-SB05Request:
Allow LESB funding (AB 923) of one Moreland Unified School
District bus by granting an extension of 6 days beyond the 60-day
requirement to dispose of old bus #9 (VIN 1GBM6P1G6JV115442) after
delivery of the new bus.Air District:
Bay Area AQMDGuidelines Section(s):
Appendix C, Section K; Mail-Out #MSC 11-16Determination:
LESBP Guidelines require that school districts ensure
that the old school bus is dismantled within 60 days of the receipt of
the new, replacement bus. Mail-Out #MSC 11-16 says that “dismantling is
not required within 60 days if documentation shows that the old school
bus was not driven after delivery of the new replacement bus.”
Communications from the secretary to the Director of Facilities,
Construction and Technology at the school district indicate that the
old school bus was driven after delivery of the new bus due to a delay
in California Highway Patrol (CHP) safety certification. The
new school bus was delivered with broken mirrors and, upon
re-inspection, two more safety related issues were identified that took
time to resolve. In addition, the old school bus was not
driven after the new school bus was certified by the CHP.
Finally, the old school bus was dismantled 66 days after delivery of
the new bus.

ARB Action:
Approved for funding.Determination Date:
July 9, 2014Contact:Lisa Jennings
(916) 322-6913Reference: #2014-SB04Request: The
air district is requesting an exemption from the
requirement for a school bus to be at least 14 years old to be eligible
for a CNG tank replacement for three West County Transportation Agency
school buses: #71 (1BABNBMA01F096407), #72
(1BABNBMA21F096408), and #73 (1BABNBMA41F096409) and two Redwood City
School District school buses: #26
(1BABNBMA31F096417) and #27 (1BABNBMA31F096420).Air District:
Bay Area AQMDGuidelines Section(s):
Mail-Out #MSC 11-37Determination:
Mail-Out 11-37 requires school buses to be at least 14
years old but no older than 16 years to receive funding. West
County Transportation Agency school buses #71, #72, and #73 and Redwood
City School District school buses #26 and #27 are 2001 model year
vehicles with CNG tanks manufactured in 2/2000 and in 3/2000.
Documentation provided shows that the tanks will expire in 02-2015 and
in 03-2015. Performing necessary school bus maintenance
during the summertime prevents out-of-service school buses during the
school year when they are needed on a daily basis.
Furthermore, the air district will need time to execute contracts and
proceed with projects prior to the bus reaching 14 years of age in
order to ensure tank replacement prior to expiration.

ARB Action:
Approved for funding with AB 923 funds.Determination Date:
July 7, 2014Contact:Lisa Jennings
(916) 322-6913Reference: #2014-SB03Request:
Allow delivery of a replacement bus, funded with Lower Emission School
Bus (LESB) Program Proposition 1B funding within the $140,000
replacement
funding cap for Apple Valley Unified School District, after the April
1, 2014, delivery deadline and also allow delivery of a replacement
bus, funded with LESB Program Proposition 1B funding within the
$140,000
replacement funding cap for Eastside Union School District, after the
April 1, 2014, delivery deadline.Air District: San
Joaquin Valley Air Pollution Control District (APCD) [for Mojave Desert
Air Quality Management District (AQMD) and for Antelope Valley APCD]Guidelines Section(s): Chapter
V, Section G and Section O; Mail-Out #MSC 10-11; Mail-Out #MSC 12-18

Determination: The
LESB Program Guidelines state that replacement buses must be delivered
by April 1, 2014, and that the $100 per day Liquidated Damages for the
late delivery of school buses must be applied to replacement buses
delivered to the school district after April 1, 2014. The air district
is requesting the delivery deadline for these contracts to be changed
from April 1, 2014, to May 29, 2014.

The air
district is funding a replacement school bus for Apple Valley Unified
School District with remaining Proposition 1B funds. These
funds
were obligated last year but are now available due to a cancelled
contract. The air district is also funding a replacement
school
bus for Eastside Union School District with a combination of remaining
Proposition 1B funds and transferred Proposition 1B funds.

The
air district has committed to include the following liquidated damages
language in the school bus replacement grant contract to ensure the
project funding will meet the June 30, 2014, liquidation deadline:

"Delivery
of the new buses to Grantees must occur on or before May 29, 2014
(“Final Delivery Date”). Time is of the essence in this
contract
for the purchase of new school buses to replace older, higher-polluting
buses. Failure to timely deliver the new school buses will
result
in harm to the Air District, school districts, school children, and air
quality in the affected school district and Air District.
Further, every day in which delivery of a new school bus has been
delayed may result in additional costs to the Air District and Grantee
to rent or lease an equivalent bus or otherwise mitigate the damages
from the delay; such costs are definite but unquantifiable at the time
of the execution of this Agreement. Therefore, the parties
acknowledge and agree to pay liquidated damages for failure to timely
deliver the new school buses, as specified below:

For every
day after May 29, 2014, in which a bus has not been delivered as
specified in this Agreement, Grantee shall be liable to the Air
District for liquidated damages in the amount of $100 per day per bus
purchased with funds from the Lower-Emission School Bus Program."

The
air district has committed to include the following liquidated damages
language in the contract/purchase agreement between the school district
and the school bus distributor to ensure the project funding will meet
the June 30, 2014, liquidation deadline:

"Time is of the
essence in these contracts for the purchase of new school buses to
replace older, higher-polluting buses. Failure to timely
deliver
the new school buses will result in harm to the implementing air
district, school districts, school children, and air quality in the
affected school district and air district. Further, every day
in
which delivery of a new school bus has been delayed may result in
additional costs to the implementing air district and school district
to rent or lease an equivalent bus or otherwise mitigate the damages
from the delay; such costs are definite but unquantifiable at the time
of the execution of the contract. Therefore, the parties
acknowledge and agree to pay liquidated damages for failure to timely
deliver the new school buses, as specified below:

For every
day after May 29, 2014, in which a bus has not been delivered as
specified in the contract, the school bus distributor/vendor shall be
liable to the school district for liquidated damages in the amount of
$100 per day per bus purchased with funds from the Lower-Emission
School Bus Program and this amount shall be offset from the payment
that will be made to the school bus distributor/vendor."

Additionally,
the funding grant agreement between the San Joaquin Valley APCD,
implementing for Mojave Desert AQMD, and Apple Valley Unified School
District must contain language that states that the agreement is
terminated if the replacement bus is not delivered to the school
district by June 30, 2014. Also, the funding grant agreement
between the San Joaquin Valley APCD, implementing for Antelope Valley
APCD, and Eastside Union School District must contain language that
states that the agreement is terminated if the replacement bus is not
delivered to the school district by June 30, 2014.

This
request is consistent with the intent of the guidelines to ensure that
every one of the new and retrofitted buses funded by the LESB Program
will be
in service transporting California’s school children no later than June
30, 2014, and all LESB State program funding will be paid out by June
30, 2014.

Determination: The
LESB Program Guidelines state that replacement buses must be delivered
by April 1, 2014, and that the $100 per day Liquidated Damages for the
late delivery of school buses must be applied to replacement buses
delivered to the school district after April 1, 2014. The air district
is requesting the delivery deadline for this contract to be changed
from April 1, 2014, to April 15, 2014. The school bus vendor
required placement of the purchase order by December 12, 2013, in order
to ensure school bus delivery by April 1, 2014. This school
bus
is being co-funded by Lake County AQMD (administered by San Joaquin
Valley APCD) with remaining Proposition 1B funds and North Coast
Unified AQMD with local AB 923 funds.

The school
district was not comfortable placing the school bus order until the
North Coast Unified AQMD contract was executed as this contract
represents the bulk of the funding. The contract execution
was
delayed due to absences of both school district and air district staff
over the holidays. The North Coast Unified AQMD contract was
executed on January 7, 2014. The school bus vendor has
indicated
that the replacement bus is now in the manufacturing process and is
slated to be finished on March 15th. The bus will then have to be
shipped/driven from Georgia to California. The bus vendor will then
need time to pass inspections and continue with whatever work they need
to do before delivery. The bus will be in California, but not to the
school district before the April 1, 2014, deadline. The vendor has
indicated that they can deliver the bus by April 15, 2014.

The
air district has committed to include the following liquidated damages
language in the school bus replacement grant contract to ensure the
project funding will meet the June 30, 2014, liquidation deadline:

Delivery
of the new bus to Grantee must occur on or before April 15, 2014
(“Final Delivery Date”). Time is of the essence in this
contract
for the purchase of new school buses to replace older, higher-polluting
buses. Failure to timely deliver the new school buses will
result
in harm to the Air District, school districts, school children, and air
quality in the affected school district and Air District.
Further, every day in which delivery of a new school bus has been
delayed may result in additional costs to the Air District and Grantee
to rent or lease an equivalent bus or otherwise mitigate the damages
from the delay; such costs are definite but unquantifiable at the time
of the execution of this Agreement. Therefore, the parties
acknowledge and agree to pay liquidated damages for failure to timely
deliver the new school buses, as specified below:
For every day
after April 15, 2014, in which a bus has not been delivered as
specified in this Agreement, Grantee shall be liable to the Air
District for liquidated damages in the amount of $100 per day per bus
purchased with funds from the LESB Program.

The air district
has committed to include the following liquidated damages language in
the contract/purchase agreement between the school district and the
school bus distributor to ensure the project funding will meet the June
30, 2014, liquidation deadline:

Time is of the essence in
these contracts for the purchase of new school buses to replace older,
higher-polluting buses. Failure to timely deliver the new
school
buses will result in harm to the implementing air district (either
North Coast Unified AQMD or San Joaquin Valley Air APCD), school
districts, school children, and air quality in the affected school
district and air district. Further, every day in which
delivery
of a new school bus has been delayed may result in additional costs to
the implementing air district and school district to rent or lease an
equivalent bus or otherwise mitigate the damages from the delay; such
costs are definite but unquantifiable at the time of the execution of
the contract. Therefore, the parties acknowledge and agree to
pay
liquidated damages for failure to timely deliver the new school buses,
as specified below:

For every day after
April 15, 2014, in which a bus has not been delivered as specified in
the contract, the school bus distributor/vendor shall be liable to the
school district for liquidated damages in the amount of $100 per day
per bus purchased with funds from the Lower-Emission School Bus Program
and this amount shall be offset from the payment that will be made to
the school bus distributor/vendor.

Additionally, the funding
grant agreement between the Lake County AQMD and Middletown Unified
School District must contain language that states that the agreement is
terminated if the replacement bus is not delivered to the school
district by June 30, 2014.

This request is consistent with
the intent of the guidelines to ensure that every one of the new and
retrofitted buses funded by the LESB Program will be in service
transporting
California’s school children no later than June 30, 2014, and all LESB
State program funding will be paid out by June 30, 2014.

ARB Action:
Approved for funding with LESB Program state funds. Determination Date:
February 6, 2014 Contact:Lisa Jennings
(916) 322-6913Reference:
2014-SB01Request:
For two school buses owned by the Napa Valley Unified School District,
the air district is requesting an exemption from the requirement for a
school district to provide documentation of tank expiration dates and
serial numbers for compressed natural gas tanks that are to be replaced
(Vehicle Identification Numbers: 1BAANBMA5XF084130 and
1BAANBMA0XF084133; Bay Area Air Quality Management District Project
Number: 12SBTR01).Air District:
Bay Area Air Quality Management DistrictGuidelines Section(s):
Mail-Out #MSC 11-37ARB Action:
Approved.

Determination:
For Assembly Bill 923-funded compressed natural gas tank replacement
projects, Mail-Out #MSC 11-37 requires school districts to provide
documentation of tank expiration dates and serial numbers of tanks that
are to be replaced. Mail-Out #MSC 11-37 allows tank
replacement
requests to be accepted by an air district within 18 months of their
expiration dates – this allows the contract process to begin while
preventing funding from being used to replace tanks that have a
significant amount of useful life remaining. Documentation of
tank expiration dates and serial numbers is often in the form of photos
of the tanks’ labels.

At the time of application, the Napa
Valley Unified School District was unable to provide clear photos of
the old tank labels because there was not enough clearance for
photography. Instead, the school district obtained the tank expiration
dates and serial numbers through visual observation of the tank labels.
Typically, in these situations, once the tanks are dropped and the tank
labels are accessible for photography, the vendor takes photos of the
old tank labels before disposing of the tanks. In this case,
the
vendor provided inadequate photo documentation of the tank labels, and
the vendor later acknowledged this via email. In addition,
the
vendor indicated that the old tanks were disposed of directly after
removal.

The inadequate documentation is described in the following table:

Bus #

Vehicle Identification Number

Description

15

1BAANBMA5XF084130

The tank label photograph for the
tank at the front left location is missing.

20

1BAANBMA0XF084133

The tank label photographs for the
tanks located at the front right, rear left, and rear right are
illegible.

The school district made a good faith effort to
obtain documentation of tank expiration dates and serial numbers of the
old tank labels. The inadequate documentation of the tank
labels
was the result of circumstances beyond the school district’s
control. However, the school district has affirmed the
following
information for both buses:

• The buses were originally manufactured
as compressed natural gas buses.
• The tanks that were replaced were the
original tanks that came with the buses.
• The vehicle model year is 1999 and the
engines were manufactured in 1998.
• This is the first time that the tanks
on the buses have been replaced.
• They determined through visual
observations that all of the tanks had expiration dates throughout 2013.

The
aforementioned information does not serve as documentation of the
expiration dates of the old tanks, but it provides a framework that
indicates that the old tanks were close to the end of a typical
manufacturer’s service life of 15 years.